According to Fotocasa, one of Spain’s leading property portals, real estate prices in Spain have plunged by 36% compared to the same period in 2007, prior to the housing bubble burst in 2008.
“For the apartment with an asking price of €225,000 in 2007, you will pay €150,600 now,” analysts at Fotocasa said. Spain’s property market is now extremely volatile, with property prices down 14% from 2010, but up 16% from 2016.
However, we are not likely to see big swing in prices over the course of 2021, María Matos, director of studies and spokesperson for Fotocasa, said.
Meanwhile, the downtrend bypassed Cadiz, where housing prices keep rising amid high demand and a lack of land supply. Thus, property values in Cadiz remain 22% more expensive than during the height of the property bubble.
Among Spain’s provincial capitals, Palma de Mallorca is the only city to have a 60% increase in the number of homes listed for sale in June 2021 compared to June 2016, but there is barely a 5% rise compared to the same period in 2020.
The cities with the biggest increase in homes for sale were ranked in the following order:
- Malaga 43%
- Madrid 41%
- Las Palmas de Gran Canaria 33%
- Donostia 33%
- Girona 32%
- Vitoria 29%
- Valencia 29%
- Pamplona 28%
- Barcelona 23%
- Cadiz 22%
- Logroño 21%
- Seville 21%
- Cáceres 21%
Among autonomous communities, where housing prices kept rising over the past five years, three ones witnessed a 30% increase. For example, the Balearic Islands saw a 51% leap in overall property prices in June 2021, while in Madrid and the Canary Islands prices advanced by 38% and 31%, respectively.
In the meantime, three other autonomous communities have seen a decline in house prices compared to the same period in 2016. They are Murcia (-1.1%), Asturias (-0.8%) and Castile and León (-0.1%).
Cities where prices fell compared to 2016 are:
- Jaén (-8.7%)
- Teruel (-7%)
- Zamora (-6%)
- Soria (-2.9%)
- Ávila (-2.7%)
- Almería (-1.4%)
- Ciudad Real (-1.3%).